What is Capability Statement?
A concise marketing document used by contractors to summarize their qualifications, experience, and differentiators for government buyers.
A capability statement is a one-to-two page document that serves as a business resume for government contractors. It is the most commonly requested marketing collateral in government contracting — agency buyers, prime contractors, and small business offices expect contractors to have one ready.
A standard capability statement includes: company overview and mission, core competencies (top 3-5 service areas), past performance highlights (2-3 relevant contracts), differentiators (what sets the firm apart), company data (NAICS codes, CAGE code, UEI, set-aside certifications, contract vehicles), and contact information.
Capability statements are used at industry days, networking events, and when responding to sources-sought notices. They should be tailored to the target audience — a capability statement for a DoD buyer should emphasize different experience than one for a civilian agency.
Related Terms
A contractor's record of performing on previous contracts, used by agencies as a key evaluation factor in awarding new contracts.
NAICS CodeA standardized numeric code that classifies businesses by industry sector, used by federal agencies to categorize contract opportunities.
CAGE CodeA 5-character identifier assigned to entities that do business with the federal government, used to track contractors across contracts.
UEI (Unique Entity Identifier)A 12-character alphanumeric identifier assigned to every entity registered in SAM.gov, replacing the former DUNS number.